Lowe’s To Buy Rona for $3.2 Billion
Lowe’s is set to shake-up the Canadian home improvement industry in a big way
The U.S. company will buy Quebec-based Rona for $3.2 billion.
Rona has made it clear that the deal will allow its brand to grow while utilizing the strengths of a well-established multi-national company.
This means that the name Rona will remain and there will be no layoffs within the company nation-wide. In fact, Rona will only grow through new opportunities worth over $1 billion.
“This transaction is a win-win combination for Rona and Lowe's as well as all stakeholders involved,” says Robert Sawyer, CEO of Rona.
“It is the intention to capitalize on this strong leadership position to transform the Canadian industry and offer more value to Canadian consumers,” he adds.
Robert Niblock, CEO and Chairman of Lowe’s in North Carolina, says the home improvement market in Canada is growing in a big way and it’s now a $45-billion industry.
“We also like the market because of its long-term fundamentals, with its high level of home ownership and well-developed distribution infrastructure,” states Niblock.
Rona was founded in 1939 and has almost 500 stores coast-to-coast.